White House backs industry-led solutions to AI risks

12:45

By: Azzat Manal

White House backs industry-led solutions to AI risks

The Trump administration is signaling a preference for industry-led approaches to artificial intelligence safety, arguing that technology companies are capable of developing their own mechanisms to address the risks associated with increasingly powerful AI systems.

Kevin Hassett, director of the White House National Economic Council, said the private sector should play the leading role in addressing emerging AI risks. Speaking to CNBC, Hassett argued that companies developing the technology are in a strong position to identify potential problems and create safeguards without requiring a major expansion of federal regulatory powers.

His comments come amid an increasingly intense debate in Washington and Silicon Valley over how advanced artificial intelligence should be governed. AI systems are becoming capable of carrying out more complex tasks with limited human intervention, raising concerns about cybersecurity, misinformation, privacy, economic disruption and the possibility of autonomous systems behaving in unexpected ways.

The White House position reflects a broader concern within the administration that excessive regulation could slow technological progress and weaken the United States' competitive position in the global AI race. President Donald Trump has repeatedly argued that the United States should maintain its technological lead, particularly as Washington views competition with China as an important strategic consideration.

Hassett nevertheless emphasized that the government would not be absent from the sector. Existing laws and regulatory institutions can still be used when companies violate legal requirements or when AI-related activities result in unlawful conduct. Attorney General Todd Blanche similarly said the Justice Department would investigate AI-related violations of existing criminal laws, while distinguishing law enforcement from the creation of a new regulatory framework specifically designed for artificial intelligence.

The administration's approach has emerged as some technology leaders and researchers call for stronger safeguards. Anthropic CEO Dario Amodei has advocated slowing the development of the most advanced AI systems, arguing that safety evaluations and coordination between companies need to keep pace with rapidly improving capabilities. His position has received support from figures including OpenAI CEO Sam Altman and Elon Musk.

The disagreement is partly rooted in different assessments of how quickly AI capabilities are advancing and whether existing safeguards can keep up. Recent discussions have focused particularly on autonomous AI agents, which can interact with digital systems, execute multiple tasks and, in some circumstances, operate with considerably less direct human supervision.

Supporters of a lighter regulatory approach argue that developers have strong commercial incentives to make their products reliable. Companies that release systems that perform poorly, misuse data or create significant risks can face customer losses, lawsuits and reputational damage. This argument has also been echoed by Meta CEO Mark Zuckerberg, who recently said AI laboratories already have substantial incentives to build their systems safely.

Critics of relying primarily on voluntary safeguards, however, argue that market incentives may not address every category of risk, particularly when potential consequences extend beyond individual users or companies. Concerns about cybersecurity, critical infrastructure and highly autonomous systems have encouraged calls for independent testing, greater transparency and stronger government oversight.

The regulatory debate is also complicated by disagreements within the technology industry itself. Some companies have called for greater coordination on AI safety, while U.S. regulators have questioned whether such cooperation could create unintended advantages for the largest firms. Federal Trade Commission Chairman Andrew Ferguson has expressed skepticism about requests for antitrust exemptions connected to AI safety cooperation, warning that regulatory arrangements should not unnecessarily shield established companies from competition.

The White House's current position therefore places the United States at the center of a wider policy debate over how to balance innovation, economic competitiveness and public safety. Rather than imposing a broad slowdown, the administration has emphasized existing legal tools and the responsibility of technology companies to manage the risks associated with their products.

As AI systems continue to become more capable, the question of who should set and enforce safety standards is likely to remain contentious. The debate now extends beyond whether artificial intelligence should be regulated to determining which risks require government intervention, which can be addressed through industry practices and how existing laws should apply to technologies that are developing at unprecedented speed.